Member Ferraro moved, seconded by Member Stern, to approve the agenda
as presented. Motion carried.

APPROVAL OF CONSENT CALENDAR:

Member Ferraro moved, seconded by Member Stern, to approve the Consent
Calendar as follows:

Minutes (301)

Approved the minutes of July 5, 2000.

June 2000 Treasurers Report (602 x 1900)

Received and filed.

Resol. No RDA 2000-09 - Register of Demands (602 x 1900)

ADOPTED RESOLUTION NO. RDA 2000-09, A RESOLUTION OF THE RANCHO PALOS
VERDES REDEVELOPMENT AGENCY ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING
FUNDS FROM WHICH THE SAME ARE TO BE PAID.

The motion to approve the Consent Calendar carried on the following roll
call vote:

AYES: Ferraro, McTaggart, Stern and Chair Byrd

NOES: None

ABSENT: Lyon

# # # # # # # # # # # # #

Abalone Cove Sewer and Storm Drain Project (1204 x 1900 x 604)

Agency Secretary Purcell announced that late correspondence had been
received from Zeiser Kling, Chris & Laura Haber, Dave Ruth, Stephen
W, Case, the Portuguese Bend Community Association; David N. Turner, Tim
& Joan Kelly, Bill Griffin and Maureen Griffin. (Said correspondence
is on file with the Agency Secretarys Office.)

Director Allison presented the staff report of August 1, 2000 and the
recommendation to: (1) Award a project to construct the Abalone Cove Sewer
Improvements to Colich and Sons, Inc., for an amount not to exceed $4,775,926,
and authorize staff to spend an additional $334,074 for anticipated extra
items of work for a total authorization of $5,110,000. (2) Award a professional
service contract to Harris and Associates for an amount not to exceed
$200,000 for inspection services for the Abalone Cove Sewer Improvements.
(3) Award a professional service contract to SA Associates, Inc. for an
amount not to exceed $40,000, for inspection services for the Abalone
Cove Sewer Improvements. (4) Award a professional service contract to
Consoer Townsend Environdyne for an amount not to exceed $20,000 for engineering
services for the Abalone Cove Sewer Improvements. (5) Award a professional
service contract to Willdan Associates for an amount not to exceed $ 10,000
for engineering services for the Abalone Cove Sewer Improvements.

Director Allison reported that one of the letters received after the
agenda packet was prepared was correspondence from the geologist.

Board discussion focused on the funding for the sewer project and the
fact that there would not be sufficient funds to complete the storm drain
project.

Director Allison stated that the geologist felt that the Altamira Canyon
storm channel improvements would provide the most slide mitigation. He
said that the road would not have to be excavated again if the project
were completed some time after the sewer project was complete.

Director Allison explained that contacting the contractor for the sewer
project to ask for price reductions before the contract was awarded would
corrupt the bid procedure. He estimated that it would take three to four
months to re-advertise the job with a delay of beginning the job to spring
2001. Mr. Allison said that staff felt would be advantageous to award
the contract as advertised or to re-advertise the project.

City Attorney Lynch concurred.

Director Allison explained that the sewer project was approximately $1.6
million short of sufficient funds and that the storm drain project would
require funding of another $1.5 million.

Board discussion then centered on the amount of liability insurance required
and the increased amount needed because the contractor would be working
on private property.

Lois Larue, 3136 Barkentine Road, disagreed with the designation of Abalone
Cove as the area in which the sewer project was being proposed and she
disagreed that the slide is active in only some sections of Abalone Cove.
She urged the Board to consider safety when making a decision about digging
deep trenches.

Mike Childs, 11 Figtree Road, read from a prepared statement describing
past research regarding this sewer project. He urged the Board to consider
the potential dangers of proceeding. He noted that installation of sewers
was fourth on the list of mitigation suggested by the panel of experts
and that the storm drain project was second on the list and in jeopardy
of not being accomplished. He was concerned that the bid from the contractor
was so much lower than the others, questioned the quality of work that
would be performed, and hoped that poor quality work would not result
in high maintenance costs which taxpayers would have to pay. He asked
if Los Angeles County would be responsible for maintenance costs. He was
concerned about the deep trenches proposed to be dug and felt that a full
geological study was needed and the consideration of other landslide abatement
projects. (A copy of Mr. Childs comments is on file with the Agency Secretarys
Office.)

Jack Downhill, 20 Vanderlip Drive, felt that the project had been well
represented and that because of the time and effort expended, it should
go forth. He said that the original project did not encompass the entire
area but provided sewers only in areas of land movement and possibly there
could be a savings in reducing the scope of the work. He felt that installation
of sewers might encourage development or at least that Zone 2 would be
dealt with in a different way.

Marianne Hunter, 31 Narcissa Drive, asked how the decision to install
the sewers was made in connection with the moratorium. She assumed there
would be an incentive and/or penalty to keep the contractors working quickly
so that the trenches would be open a minimum amount of time. She asked
who was responsible for a system failure or damage to homes if this project
caused land movement and said that she would prefer to keep her septic
tank. She urged the Board to take a conservative approach to allay the
fears of homeowners.

Director Allison explained that a district would be created to which
property owners would pay an annual maintenance fee and that the contractor
had a performance bond for prompt completion of the project and a warranty
to cover repairs in the first year.

Alan Mendel, 10554 Wyton Drive, Los Angeles, CA 90024, said that he owned
a lot on Fig Tree and was in favor on sewer installation.

John Monks, 32200 Schooner Drive, said that he was a landowner in the
Portuguese Bend area and that he was in favor of the sewer project. He
said that the same issues have been debated many times and he thought
that after the liens were removed, there would be less opposition. He
felt that the longer the project was delayed the more expensive installation
would become and he felt it would be good for the Santa Monica Bay to
eliminate the septic tanks.

Board consensus was that installing sewers for the homes in the areas
where the land was stable would assure that septic tank water would not
enter the landslide causing additional land movement even in the stable
areas and to provide modern amenities as well. It was argued, however,
that perhaps the money could be better spent on dewatering wells.

Chris Haber, 11 Plumtree Road, said that he had been following the project
since 1995 and had not heard of a smaller scope project. He felt the sewer
system was the best way to keep water out of the slide, was aware of the
years of study behind this project and funds set aside, and urged the
Board to approve the contract so that the major excavation could be completed
before the rainy season. He said it was his understanding that a few of
the dewatering wells are doing most of the work and some are not successful.

Ted Polich, 547 W. 140th Street, Gardena, CA 90248, representing
Colich & Sons, the staff recommended, stated that the City could be
assured of quality work because the company had been in business for over
fifty years and could furnish references from many large cities and counties
in California. He said that the owner lived in Rancho Palos Verdes, was
familiar with the area, and had done a lot of work on the peninsula, which
might have accounted for his ability to bid lower. He explained that his
company would have their workers safety and cost efficiency in mind and
therefore would backfill behind the excavation to reduce the possibility
of land movement.

Mike Childs returned to the podium to describe his memory of how the
project was expanded. He said that the entire community was to pay for
the sewers for some of the homes and Sharon Hegetschweiler suggested in
an audience participation portion of a February 1993 Technical Panel meeting
that a larger project would benefit the whole community and be more equitable.
He said that this was documented in public record.

Board discussion then focused on whether there should e a policy to use
General Fund money to make up for the shortfall for this project; and,
if financial assistance could be sought from the County. Reference was
then made to a July 30, 1996 letter stating that dewatering wells were
the first priority for slide mitigation, however, the funds from the Horan
bonds were almost depleted.

City Manager Evans explained that even though installation of the dewatering
wells was relatively inexpensive, they had not been effective in all cases.
He suggested that the contract for the sewer project should be awarded
or if the Board decided not to award this contract, the design for the
Altamira Canyon drainage project be completed, wait for all permits to
be approved and then advertise for this contract. He advised against returning
to the study mode. He said that there is no guarantee that any of these
projects will improve the landslide but they probably would help. He said
that in his opinion the sewer project would have a positive impact on
the slide and that replacing the septic tanks would be good for health
and public safety.

Board discussion continued about the efficacy of the dewatering wells
versus the Altamira Canyon storm drain project; how some of the wells
are more effective than others; the fact that the existing septic tanks
are constantly leaking into the slide; the necessity of the Altamira Canyon
project in the overall landslide abatement process; the approvals from
residents and state agencies required to proceed with that project; the
County bonds which would pay for the sewer project; that this sewer project
would enable homeowners to add a bathroom or another sink without the
current requirement of having to install a holding tank; and, the fact
that this project has been studied for many years resulting in increased
costs. Concern, however, was expressed about the time and effort already
expended on this project; the balance remaining from the Horan settlement;
and, if the funds had been spent wisely.

Member McTaggart moved, seconded by Member Ferraro, to (1) Awarded a
project to construct the Abalone Cove Sewer Improvements to Colich and
Sons, Inc., for an amount not to exceed $4,775,926, and authorize staff
to spend an additional $334,074 for anticipated extra items of work for
a total authorization of $5,110,000. (2) Awarded a professional service
contract to Harris and Associates for an amount not to exceed $200,000
for inspection services for the Abalone Cove Sewer Improvements. (3) Awarded
a professional service contract to SA Associates, Inc. for an amount not
to exceed $40,000, for inspection services for the Abalone Cove Sewer
Improvements. (4) Awarded a professional service contract to Consoer Townsend
Environdyne for an amount not to exceed $20,000 for engineering services
for the Abalone Cove Sewer Improvements. (5) Awarded a professional service
contract to Willdan Associates for an amount not to exceed $10,000 for
engineering services for the Abalone Cove Sewer Improvements.

The motion carried on the following roll call vote:

AYES: Ferraro, McTaggart, Stern, and Chair Byrd

NOES: None

ABSENT: Lyon

Member McTaggart moved, seconded by Member Ferraro to (1) Agendize for
the September 5 City Council meeting discussion of a Council policy to
decide whether to use General Fund money to find a mechanism to fund drainage
projects. (2) Have Chair Byrd and Member McTaggart contact Supervisor
Don Knabe to inquire about financial assistance from Los Angeles County.
Motion carried.